BAHR
The fight for capital Capital gets channelled to the asset managers that have the best team and an X factor, and that also run a tight ship, according to BAHR Partner Peter Hammerich. In other words: Hardly a cakewalk. A global pandemic may not necessarily smoothen the path?
If your fund does not attract capital, you are just a consultant. You need competent capital, and that means facing global competition
– The raising of capital for new funds has not come to a halt. The reason is clear. The world is full of capital, and that capital needs to be invested someplace. Stock exchanges are one alternative. Liquid, but involving high risk. Money market funds and bonds are not all that interesting in a low interest rate regime. If you manage an alternative investment fund and can offer a 10-15 percent return net of costs, then you are in a sweet spot, says Peter Hammerich, BAHR Partner and Head of the firm’s Asset Management and Private Equity market group, who makes the following observation: – So the market has not dried up, but there has been an element of delay. The world came to a standstill because of covid-19, and this had implications. Institutional investors that were considering investments in new funds in February chose to put these processes on hold in March. They needed a bit of a timeout. This is because fund investment is a longterm commitment. You can buy and sell stock exchange investments at the drop of a hat, but private equity funds and other alternative investment funds do not work like that. – Another aspect that exacerbated the delay is that the
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